In the coming months, the government will be reducing their support for businesses impacted by the COVID-19 lockdown. Now is the time to prepare your business for a new ‘normal’.
We will all need to adjust to a new way of doing things, and you may need to develop entirely new business models to enable profitability.
If you haven’t already, it’s time to review your business and financial plans; regardless of when your year-end is.
Understanding where you are now is the first step to planning your future. All businesses should conduct a full audit to understand their cash flow situation, stock and expected expenses for the next few months.
Ideally, these key metrics should be available live or updated frequently enough to allow you to react quickly to unforeseen developments and more accurately forecast your situation over the coming months.
Ask the question: Do I need it?
Coronavirus forced a lot of businesses to completely restructure their entire operation in the space of a few short weeks. As a result, working from home and communicating with customers digitally is now considered normal, and many people have developed new skills and found more creative ways of delivering services.
This begs the question; are all the things we did pre-lockdown necessary?
Now is a great time to understand what you’ve been able to work without. Is the large office space required? For example, investing in ways to support remote working, ensuring mental health is considered might be a better investment than inner city rent.
Are all journeys necessary? Meeting people face to face is essential to build relationships. However, can the same outcomes be achieved using a video call?
Planning for the future
Cash flow will be a critical factor in the speed and ease in which businesses bounce back from COVID-19. The government’s intervention and support packages were designed to give businesses time to react and plan. As this government support is slowly withdrawn, businesses will need to support themselves, and cash flow is essential.
Nobody knows what the long-term impact COVID-19 will have on the economy. Likewise, nobody knows for certain if this lockdown has prevented a second wave. Having cash allows you to react to changes quickly and gives you more bargaining power with suppliers.
If cash flow is a concern, there may be government support available. A full list of support can be found here: https://www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19
As mentioned above, continually reviewing your position will allow you to adapt to situations quickly.
How can we help?
If there is anything we can do to help you manage your current financial situation, please call us on 0121 550 8525. We’ll be happy to talk you through some options based on your individual needs.
Please note that during this time, we are experiencing a high number of enquires. We are responding to everyone; however, it may take longer than normal. We appreciate your patience.